3Q2017 Earnings Preview: Slower, but Still Solid!

October 10, 2017 | posted in: Financial Insights, LPL Weekly Market Commentary | by

This week is the beginning of the 3rd Quarter earnings season, and LPL Research gives us an overview of what to expect.  “Third quarter earnings season gets underway this week (October 9–13) and it should be another good one. The S&P 500 Index has exceeded earnings expectations 33 straight quarters and we see no reason why the third quarter won’t make it 34.”

Key takeaways from LPL Financial include:

  • We expect another solid quarter of earnings growth, but a third straight double-digit increase for S&P 500 profits appears unlikely.
  • Hurricane impacts, tougher comparisons, and a lack of contribution beyond technology and energy present earnings growth headwinds.
  • Hurricane impacts aside, we have several reasons to be optimistic, including solid manufacturing data, recent U.S. dollar weakness, and resilient estimates.

Read more from LPL Financial’s John Lynch, Chief Investment Strategist, and Jeffrey Buchbinder, CFA Equity Strategist.